With corporate reporting season set to kick off in about a week, analysts are concerned that investors will not like what they hear.

The Australian economy may be sitting pretty compared with the United States and Europe, but UBS equity strategist David Cassidy says the manufacturing, retail, housing and financial services sectors will likely deliver subdued results.

"I think the reporting season will be relatively subdued and we'll see more trimming of estimates from analysts, so generally we are looking for earnings growth in the order of around about 7 to 8 per cent for the full year," Mr Cassidy said.

Treasurer Wayne Swan says there is too much focus on the economic headwinds blowing in from Europe's debt woes.

"We shouldn't let the downside risks that we see in Europe blind us to the fundamental strengths in our economy, which are showing through week after week, month after month," Mr Swan said.

But Mr Cassidy says those businesses exposed to the strong Australian dollar are suffering.

The dollar is likely to stay elevated for the short term at least, due largely to the demand for commodities and Australia's relatively high interest rates.

"I think it is a huge issue, not just for sectors like the steel industry, the car industry, but it's having a big impact on retail spending patterns with this propensity now to spend online, to access cheaper goods offshore, also to travel overseas and potentially spend while you are on holiday," Mr Cassidy said.

Even if some parts of the patchwork economy appear stronger than others, Mr Cassidy says offshore influences rather than Government policy are largely directing the economy.

"It's more a function of our place in the global economy, in particular our role as a commodity supplier," Mr Cassidy said.

"It has been very fortuitous in recent years."

Mr Swan will no doubt be hoping that luck does not run out any time soon.